Business / Financial Markets | CURRENCY MARKET

Dollar hits three-week highs around ¥113.30 in Tokyo

JIJI

The dollar hit three-week highs around ¥113.30 in Tokyo trading Wednesday, as risk appetite increased among market participants thanks to brisk U.S. equities overnight.

At 5 p.m., the dollar stood at ¥113.19-19, up from ¥112.80-81 at the same time Tuesday. The euro was at $1.346-1347, down from $1.1363-1363, and at ¥128.44-44, up from ¥128.18-19.

The dollar changed hands above ¥113 in early trading, carrying over its overnight strength abroad that mainly reflected receding risk aversion following Wall Street’s sharp rebound, traders said.

Also supported by buying from Japanese importers for month-end settlements, the dollar rose to three-week highs around ¥113.30 in the morning and the afternoon, the traders said.

Other major dollar-positive factors were a continued surge in the benchmark 225-issue Nikkei stock average and higher Chinese stocks.

In late trading, the U.S. currency pared its gains due to profit-taking by Japanese institutional investors and selling on a rally mainly from foreign exchange margin traders, market sources said.

A currency market broker said that “no trading incentive emerged” from a news conference by Bank of Japan Gov. Haruhiko Kuroda in the afternoon.

“Few players are making active moves in the dollar-yen sector as U.S. stocks may grow unstable” after key events, including the announcements of earnings by Apple Inc. on Thursday and U.S. jobs data for October on Friday, as well as the U.S. midterm elections Tuesday, said an official of a margin trading service firm.